As your life changes and your family grows, your home may no longer fit your lifestyle. Should you renovate or relocate? When faced with the decision to move up the property ladder or pursue your dream home there are pro’s and con’s.
Renovating can be an ambitious undertaking. Factors to consider not only include financing for the renovation but also the return you will gain in property value from improvements. Whereas, if you relocate, you have to weigh in the costs associated with a purchase and sale.
Renovations should be a part of a long term plan and not a short term goal. They can not only be costly but unpredictable. It is only when the walls are torn down that you are able to determine the true renovation cost. While some projects immediately enhance value, others may not. Bathroom, kitchen and window upgrades are known to be the most beneficial upgrades to do in a home. However, keep in mind that the number one selling feature of a home is location!
On the flip side, relocating can be costly. Real Estate Agent commissions, legal fees, utility hook-ups, property tax adjustments and moving costs could result in an expensive endeavour. In addition, there is the added pressure of finding a home that is right for your lifestyle now and in the foreseeable future. If you are considering the possibility of relocating, also take into consideration current mortgage interest rates to assist in determining your affordability.
In order to make the most educated decision, it is wise to talk to industry professionals. Mortgage Brokers, Contractors, Investment Advisors and Real Estate Agents can educate you on your options to ensure you are getting the best value for your dollar possible.